While Dubai-based realty firm Nshama held road shows in Delhi and Mumbai last month inviting Indians to invest in a property in Dubai, another realty firm Damac has just conducted road shows in Indian metros for their properties in London and Dubai.Deepak Goel | August 07, 2015, 12:59 IST

NEW DELHI: Recognising the voracious appetite of Indians for real estate, foreign real estate firms are making a beeline to showcase their properties in India.

While Dubai-based realty firm Nshama held road shows in Delhi and Mumbai last month inviting Indians to invest in a property in Dubai, another realty firm Damac has just conducted road shows in Indian metros for their properties in London and Dubai.

Another fair, the International Real Estate Expo has been planned for December this year in New Delhi where developers from Thailand, Singapore, Australia, US, UK and other parts of Europe are participating to showcase not just residential but commercial, retail and industrial property as well.

Indians have been at the forefront of riding the real estate boom in London, Dubai, New York and Singapore and now the trend is percolating to the upper middle class which is investing in second homes in various global cities, says real estate advisor Tarun Mehrotra.

According to a recent report by the National Association of Realtors (USA), the amount invested by Indians in real estate in US stood at $7.9 billion for 12 months ending March 2015, up from $5.8 billion in the previous year.

Even in Dubai, Indians put in over Rs 3,000 crore (AED 18.1 billion) for the calendar year 2014, according to a report released by Dubai Land Department in January this year, making them the largest investors as compared to any other nationality.

Higher rental yields in their overseas markets are a major attraction for Indians. For instance, the rental yield in Dubai for residential property is 6-7% as compared to about 2% in India, says Ashiwinder Raj Singh, chief executive officer--residential services at property advisory firm JLL. And if the depreciation in Indian currency that has been happening in the last few years is accounted for, the yield from the property goes up to 10%, he adds.

The Rupee has moved from Rs 62 plus to a US Dollar last year to over Rs 64 now.

Mehrotra points out to another reason for Indians opting to buy property overseas. "Most Indian buyers do realise that the Indian real estate in metro locations like Delhi and Mumbai is far over valued if compared in the quality of asset on offer to global real estate options," he says.

Additionally, the well-heeled Indians get an opportunity to broad base their investment portfolio, points out Singh.

There are indications that the investment by Indians in property abroad will only go up. "This trend is expected to further grow with the Reserve Bank of India doubling the foreign exchange remittance limit to $2,50,000 per individual per year in 2015," says Shveta Jain, executive director--residential services at Cushman & Wakefield. The limit stood at $1,25,000 until last year.

Mehrotra too feels the trend will gain momentum as global boundaries are getting blurred giving rise to 'Global Citizens' who would be available for international property developers to market their projects.

According to an industry estimate, the number of Indians investing in property on foreign shores has gone up 166% in the last 10 years and about 50% of the ultra HNIs and HNIs in India have investment in property abroad.